Another Argentine feature coming to Europe...

The Corralito. It did not end well in Argentina and, as it is imposed by the Euro Group on Cyprus - provoking massive bank runs in the island of St. Barnabas -, it will not end well in the Eurozone.

In fact, it is even worse than the Corralito, it is simply the confiscation, the seizure of savings:

No, what’s happening in Cyprus — assuming that the Cypriot parliament is just as gutless as the new Cypriot president, Nicos Anastasiades, in capitulating to eurozone demands — is nothing but the seizure of private assets for the benefit of the euro project (and for the benefit of Angela Merkel in the coming elections, which here in Brussels means the same thing). [The Spectator]

Another chapter in the post-Christian economic dictatorship that is ruining Southern Europe. If only the lessons of Pius XI were remembered:

Free competition has destroyed itself; economic dictatorship has supplanted the free market; unbridled ambition for power has likewise succeeded greed for gain; all economic life has become tragically hard, inexorable, and cruel. To these are to be added the grave evils that have resulted from an intermingling and shameful confusion of the functions and duties of public authority with those of the economic sphere - such as, one of the worst, the virtual degradation of the majesty of the State, which although it ought to sit on high like a queen and supreme arbitress, free from all partiality and intent upon the one common good and justice, is become a slave, surrendered and delivered to the passions and greed of men. And as to international relations, two different streams have issued from the one fountain-head: On the one hand, economic nationalism or even economic imperialism; on the other, a no less deadly and accursed internationalism of finance or international imperialism whose country is where profit is.

...[A]s to avoid the reefs of individualism and collectivism. the twofold character, that is individual and social, both of capital or ownership and of work or labor must be given due and rightful weight. Relations of one to the other must be made to conform to the laws of strictest justice - commutative justice, as it is called - with the support, however, of Christian charity. Free competition, kept within definite and due limits, and still more economic dictatorship, must be effectively brought under public authority in these matters which pertain to the latter's function. The public institutions themselves, of peoples, moreover, ought to make all human society conform to the needs of the common good; that is, to the norm of social justice. If this is done, that most important division of social life, namely, economic activity, cannot fail likewise to return to right and sound order.
...

The laws passed to promote corporate business, while dividing and limiting the risk of business, have given occasion to the most sordid license. For We observe that consciences are little affected by this reduced obligation of accountability; that furthermore, by hiding under the shelter of a joint name, the worst of injustices and frauds are penetrated; and that, too, directors of business companies, forgetful of their trust, betray the rights of those whose savings they have undertaken to administer. Lastly, We must not omit to mention those crafty men who, wholly unconcerned about any honest usefulness of their work, do not scruple to stimulate the baser human desires and, when they are aroused, use them for their own profit.

Strict and watchful moral restraint enforced vigorously by governmental authority could have banished these enormous evils and even forestalled them; this restraint, however, has too often been sadly lacking. For since the seeds of a new form of economy were bursting forth just when the principles of rationalism had been implanted and rooted in many minds, there quickly developed a body of economic teaching far removed from the true moral law, and, as a result, completely free rein was given to human passions.
...
No genuine cure can be furnished for this lamentable ruin of souls, which, so long as it continues, will frustrate all efforts to regenerate society, unless men return openly and sincerely to the teaching of the Gospel, to the precepts of Him Who alone has the words of everlasting life, words which will never pass away, even if Heaven and earth will pass away.

20 comments:

What is happening in Cyprus is quite incredible. The line between public finance and (hitherto inviolable in all free nations) private property has been crossed in the most atrocious way.

Even medieval English Kings couldn't make a levy without the Barons' agreement.

The action of the so-called "Troika" is nothing less than open banditry.

As an Englishman I am pleased in one way and in one way only: the growing clamour from my countrymen (seconded and thirded by me) to get us out of the European Union Socialist Soviet Republic at the earliest possible moment may well become unstoppable now.

I am beyond words at the fanaticism of the Euro "elite" whose implacable intention to save the Euro is really at any cost: 50% plus unemployment in Greece and Spain, not far off that in Portugal, Italy beginning to catch up.

Democracy of course long since bit the dust in the West, whether in the USA or in Europe. Oligarchy is the rule of the day and oligarchy invariably ends in bloody revolution.

And all this happened, the economic and financial meltdown; the corruption of democracy; the rule of the financial jungle; in exactly the same amount of time as it took the Revolutionaries to eviscerate the Catholic Church in Her doctrine, theology and liturgy.

What lies behind all of these disasters, whether civil or ecclesiastic?

A collapse in belief in God and a consequent collapse in morals. Just in four or five decades! Absolutely astonishing.

It can only be demonic, of that I am 100% certain. 500% certain.

As what little remains of Christian Civilisation begins its slide into the gutter, let us note who and what will benefit:

a) Oil and gas-rich Islam;b) Russia and China, both of whom have large sovereign surpluses.

Our Lady told Lucia that "Communism" (not "Russia") would return to power before being finally defeated. A collapse into economic chaos would likely herald that system's return to attraction for a large part of whole populations defrauded and led into poverty by their own leaders whose only political interest is their own power and income.

God's plan for the world is speeding up, ratcheting up to a conclusion, it seems to me.

Due to Americanism,which was the result of Puissant Prelates like Ireland and Gibbons, caving in to the baleful influence of the Judaised Calvinists who were the power behind the Colonies successful secession from the English Crown, we Catholics majestically erred by falling into quiessence about Usury and the sins crying to heaven for vengeance - like depriving a laborer of his just wages and mistreating widows.

Thanks for this post! Notice how charity is more than giving a buck to the bum at the intersection, how Pius knows it's also how institutions are run. May I urge you to look at the situation in Hungary? A party has run and won by a big majority on a Christian coalition. They have written a new constitution that names Christianity as the foundation of Hungary, protects life from conception to natural death, forbids homosexual marriage and adoption of children, and pertinent here, makes the bank inspector be appointed by the government rather than by the banks. I hope RC will look deeply and will help me understand why the Vatican has not offered one supportive word, and last week, on the eve of a parliamentary vote to sew up a few holes in the legal language, Radio Vatican completely attacked Hungary for three days, repeated all the liberal objections (that the constitution was 'undemocratic' altho the EU courts have not found it so after strenuous atttempts, not to mention the demonstrated electoral support of the great majority of citizens), that Hungary has no right to reverse Europe's position on the 'rights' and 'dignity' of each individual (what, to sin? I guess!), how many thousands are protesting the anti-bank moves, that the constitution violates religious liberty (by removing some sects from the list that receive government money, as they do in Europe, but does not make them illegal to practice) etc. etc. ad nauseum. Vatican Radio's author's name, Stefan Bos, to google it. Tell me it's continuous with the tradition as reflected in this post. (We should be imitating Hungary!)

In reality, the corralito was worse than the Cyprus tax on bank accounts because it froze all deposits and afterwards imposed a "pesification" of dollar denominated assets with a devalued exchange rate worth less than 40% the previous one. Of course, if things get worse in Cyprus, a blockage of bank assets may happen as in Argentina

The new Pope was always extremely forceful in his criticisms of the grave financial forces causing damage to his country when he was a Cardinal. The then-Cardinal's record in these delicate matters of social justice and the economic dictatorship is sterling. Those who see a criticism of him in the title of this post are malicious and demential, and have no capability of any kind in reading comprehension: it is, on the contrary, a reminder of difficult times and that the Church has the answers today, as she had 80 years ago, and 12 years ago in Argentina.

No problem, I'm sure once we properly understanding the true authentic teachings of Second Vatican, properly implement them, and consign Pius XI's merely socially conditioned contingent teachings to the dustbin of church history, all will be well.

Apropos this topic, Ann Barnhardt has an interesting piece up on "The Marxist-Capitalist Spectral Doughnut," describing how Marxism and unrestrained Capitalism both end in oligarchy and dictatorship. Worth a read.

The Parliament voted against taking away 10% of deposits. Unfortunately now, the depositors can't get any of their money out of the bank. That's because the money isn't there. It's been lent out (as it is in every bank) to borrowers. In the case of Cyprus, the borrowers are unable to pay back. The loans have gone bad. So the question is who should take the loss? The ECB was willing to share the loss 50/50 with the depositors. With the parliamentary vote, the depositors take the entire loss. Losing 10% is worse than losing 20%, 50% or more.

Muckemdanno is right.In fact Cyprus bank system gave over years a dear interest for big amounts of money, stored in by foreign companies and banks. It's been the Cyprus government, who decided for low tax and almost no bank supervision. The dear interest is just a consequence of these decisions. But the Banks in Cyprus gave way too much compared to other european contries (for example Germany: deposit for two years for 500.000 EUR: 1.5% interest; in Cyprus: 4.5% interest.) Of course Putin does not want cyprus "savers" to pay the bill, because many of them are russian, making a very high profit on their deposits.

Cyprus asked for help, because they now see, their banks are going to get bankrupt. Do Germany and the other contries in the Eurozone have to pay for the fault of the Cyprus parliament? I dont think so. Ok, Germany wants to help, because we (yes, i'm german ;-)) want Cyprus to keep the Euro and we are going to "invest" 10.000.000.000 EUR, and we expect Cyprus, espercially the depositors from outside, to take part in saving Cyprus from bankrupt. (Have You ever had so much money in Your hand? None of us neither - nobody can imagine, how much money Cyprus blew up...)

As Uncle Claiborne noted, Belloc was all over this financial chicanery, manipulated by the usual suspects, decades ago. He and other Catholic writers were well aware of the malignant influence of these international bankers and oligarchs.

For an absolutely devastating critique of their methods, done in satirical from as only Belloc could do, read his "The Mercy of Allah".